We reconsider the Cournot oligopoly problem in light of the theory of
supermodular games. Invoking the recent ordinal version of this theory
proposed by Milgrom and Shannon, we generalize Novshek's existence re
sult, derive the associated uniqueness result, give an extension of a
classical existence result under symmetry, and provide conditions maki
ng a Cournot oligopoly into a log-supermodular game (with the natural
order on the action sets). We also provide extensive and precise insig
ht as to why decreasing best-responses are widely regarded as being ''
typical'' for the Cournot model with production costs. Several illustr
ative examples are provided. (C) 1996 Academic Press, Inc.